Treasurer Josh Frydenberg has thrown his weight behind the adoption of net zero emissions by 2050, warning that unless Australia moves, sanctions by capital markets will increase borrowing costs, affecting everything from home and business loans to major infrastructure investments.

He is also urging banks, insurers and super funds to show they are serious about achieving net zero emissions by continuing to support traditional industries such as agriculture and mining to help them adapt to what he says is a “structural and systemic shift in our financial system, which will only gain pace over time”.